Switzerland - state revenues from taxes and licenses

The Swiss model of gambling regulation combines strict controls and a transparent fiscal architecture. The state receives revenues through casino gross gaming income (GGR) taxes, licensing fees, and lottery sector deductions for community projects. With a high entry threshold, tough KYC/AML and responsible play, these revenues are stable and predictable.

1) Sources of budget revenues

Casino tax (per GGR): A progressive scale on the gross gambling income of land-based and their online platforms. The rate increases as GGR grows, which smooths out cyclicality and protects the budget.

License fees and supervision fees: one-time and/or periodic fees for issuing/renewing licenses, as well as annual supervisory fees to finance control and audits.

Lottery circuit (Swisslos, Loterie Romande): works according to the logic of public benefit - a significant part of the proceeds is directed to culture, sports, social and youth projects through cantonal and regional funds.

Administrative fines and penalties: for violations of license conditions, advertising restrictions, RG/AML procedures (to the extent commensurate with violations).

2) How casinos are taxed (offline and online)

Single tax base - GGR: bets minus winnings. The tax is calculated after audited segregation of jackpot funds, bonuses and technical adjustments.

Progressiveness: The base rate rises across GGR thresholds so that large operators contribute disproportionately more.

Omnichannel: Online results are included in the aggregate GGR of a licensed land-based casino; the same fiscal logic and controls apply.

Reducing/increasing factors (where applicable): can take into account the profile of the game (board/slots/live), geography and investment obligations of the operator.

3) Lotteries and allocation to "public benefit"

Dual structure: Swisslos (DE/IT cantons) and Loterie Romande (FR cantons).

Purpose of funds: return to the regions to finance culture, sports, social sphere, youth and educational initiatives.

Transparency: clear reports on grants and funded projects, public selection criteria, annual audit.

4) Licensing and compliance costs

Casino licenses: issuance/renewal fees, capital commitments, information security, RG and continuous monitoring.

Supervisory contributions: finance inspections, IT audits (RNG/live), test purchases, incident management.

Associated operator costs (affecting the fiscal base): KYC/AML, antifraud, SOC, content certification, staff training, which improves the quality of reporting and the sustainability of tax payments.

5) Distribution between levels of government

Federal level: receives a share of the GGR tax and uses it for nationwide tasks (including health care/social protection according to the mandate).

Cantons: receive their share and funds of the lottery circuit; finance regional programs, cultural events, sports infrastructure and social projects.

The principle of "money remains in the region": lottery funds are mainly returned to the same language/territorial cluster where they were generated.

6) Approximate calculation scheme (illustrative)

1. The casino forms GGR: the amount of bets is the amount of winnings.

2. GGR excludes jackpot/bonus trust funds (as per rules) confirmed by audit.

3. A progressive casino tax rate applies to the remaining base.

4. Additionally, supervisory fees/licenses are taken into account.

5. The formed payment is distributed between the Confederation and the cantons according to the established shares.

💡 Note: exact rates/shares depend on current regulations and license; in public communication, operators typically disclose aggregated amounts without thresholding granularity.

7) Why incomes are sustainable

High entry threshold and control: a limited number of licenses, rigorous auditing and certification smooth out the risks of non-payments.

Responsible play: Deposit/time/loss limits reduce the likelihood of regulatory shocks and legal costs, stabilizing the GGR.

Omnichannel ecosystem: offline supports tourism and MICE activity, online - mobile accessibility; seasonality is smoothed by a portfolio of verticals.

Lottery mission: Sustainable funding of community projects increases public confidence in the system.

8) Effects on the economy and society

Budget: predictable receipts, "long" programs in culture and sports.

Tourism and employment: casinos as anchor points for business and event tourism; multiplier for hotels, restaurants, transport, media.

Technological development: operators' investments in information security, anti-fraud, BI and RG analytics increase the digital maturity of related industries.

Social balance: fiscal benefits are combined with strict prevention of the risks of ludomania.

9) Risks and how they are managed

Macrocycles and exchange rates: offset by a progressive rate and portfolio structure of income.

Online demand migration: controlled by the "only through local licenses" model and blocking illegal sites.

Legal changes in the EU/world: minimized by autonomy of Swiss regulation and permanent audits.

Technology threats (fraud/cyberattacks): covered by investments in WAF, DDoS protection, SIEM/SOC and regular pen tests.

10) Horizon 2026-2030: what can strengthen budget revenues

A single offline/online wallet and personalization under the control of RG - LTV growth without aggressive marketing.

Local live studios and "made in Switzerland" branding - export of entertainment content and tourist flow.

More transparent analytics for players (limits, RTP bands, session history) - trust and sustainable participation.

Digitalization of supervision (integrated reports, near-real-time monitoring) - reducing administrative costs and increasing collection.

Switzerland's gaming fiscal model is a combination of a progressive GGR tax, licensing and supervisory fees, and a powerful lottery circuit of public benefit. Strict compliance, a limited number of licenses and mature omnichannel make income stable, and their distribution is understandable and socially oriented.